Tenant's move clears space for development at stockyards

Oct. 5, 2012

The land where the Sioux Falls Stockyards once operated now is largely unoccupied. The area across from John Morrell and Co. is being prepared for future renovations. / Melissa Sue Gerrits / Argus Leader

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The remnants of the the former Sioux Falls Stockyards soon will be demolished in one of the final steps to make room for future development of the 32-acre site near John Morrell and Co.

Tri-State Hog Sales — the last remaining tenant on the property — next spring will move east of its existing operation, to 2.39 acres at 901 E. Rice St.

Since he bought the land two years ago, developer Gene Peska has been negotiating with business owner Paul VanderViet about the move.

“Where he’s at now, quite honestly with the long-range plan and everything, it didn’t feel like a good fit to stay there,” Peska said, adding that the new site still is part of the 32-acre former stockyards property.

Plans for the former stockyards, which closed in June 2009, have created controversy among Sioux Falls residents, city officials and parks and recreation board members. But this move could be what’s needed to spark development.

Peska expects an announcement regarding a purchase of 10 to 13 acres early next year. Construction of an $8 million Xcel Energy substation also will begin on 15 acres next year. And retired stockyards employee Jim Woster is working on a plan to create a stockyards plaza as a historical reminder of the era that began in 1917 when the facility opened.

“It’s really one of the first major steps to continued revitalization along Weber Avenue,” Mike Crane, parks and recreation board president, said of the progress.

Some envision the area becoming a thriving extension of downtown, with a retail and apartment scene. Others think it should remain industrial like it’s always been, partly because of the hard-to-come by rail access. Plans by scrap metal recycler TJN Enterprises to expand on the site in 2010 were rejected, and instead the company will build a new site near Great Bear Recreation Area.

The city planning commission this week approved a conditional-use permit for the new 21,600-square-foot Tri-State Hog Sales building for marketing and distribution of hogs. The operation will be totally enclosed. Peska will build the facility and expects it to be ready by early spring. The 32-acre stockyards site already is largely cleared. Peska will remove all remaining buildings and concrete after Tri-State Hog Sales relocates, bringing the land back to its original state and ensuring it’s ready for what comes next. An environmental study and remediation is complete and approved by the state, Peska said.

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Xcel’s substation will replace the smaller one in Falls Park. Final details for the 15-acre land purchase should be completed later this month, said Jim Clark, Xcel’s South Dakota principal manager. It’s slated for completion in 2014. It will be built on 10 acres and be surrounded by a wooden fence, trees and landscaping, Clark said.

Peska also is reserving three acres for the proposed stockyards plaza on the west end of the site, facing Weber Avenue and Falls Park. Woster’s small group has raised $10,000 so far and hired local landscape architect Confluence to do a preliminary design.

“It’s so special to a lot of us, I just didn’t want people in 50 years to not know the stockyards was there,” said Woster, who spent four decades working at the Sioux Falls Stockyards. “I just hope we can get it done.”

It’s unclear what exactly the stockyards plaza might become, but Woster envisions something that would provide historical context with stories and pictures, perhaps a museum. It could be a site with a berm, natural grasses and other landscaping elements.

“Make something that will tell the story of the stockyards, what it was and what it meant, what that part of the city meant to the growth of Sioux Falls,” Woster said. “It was huge. That’s where we started.”

The Sioux Falls Area Community Foundation has accepted the group as a special project fund, which means it will handle donations, provide financial oversight and issue tax receipts, President and CEO Candy Hanson said. Hanson is hoping to have the design from Confluence by the end of the month, which will provide more details on total cost and scope of the project.

“We’re really interested in this because we are committed to preserving historical elements of our city, and the stockyards was an awfully big part of what made Sioux Falls successful in its early days,” Hanson said. “I think the project has merit because it will appeal to a set of potential donors that have a strong interest in agribusiness and in the early days of Sioux Falls.”

Crane, with the parks and recreation board, said the stockyards plaza will commemorate the role it played in Sioux Falls’ development and fit well with Falls Park.